Old-Age - Deductions from the pension payments

 Health insurance contributions

Health insurance contributions are deducted from your old-age pension at the rate of NIS 189 (as of 01.01.2012) for an individual and NIS 273 (as of 01.01.2012) for a couple. If you are entitled to an income supplement, the health insurance deduction is NIS 100 (as of 01.01.2012) for both an individual and a couple.

Please note:
-    If you are working as a salaried employee and your employer deducts health insurance contributions from your salary, you must notify your employer to stop that deduction.
-    If you receive an increment to your pension for your spouse, health insurance contributions for a couple are deducted from your pension, even if your spouse is working as a salaried employee.
-    If you do not receive an increment to your old-age pension for your spouse because she is receiving a pension from the National Insurance Institute, health insurance contributions for a couple are deducted from your pension.

Debts to the National Insurance Institute

The National Insurance Institute is entitled to deduct from your old-age pension any debts that you owe for insurance contributions, advance payments that you received on the pension or for other benefits, monies paid to you by mistake or illegally, and alimony or child support that is due from you under a court judgment (For the purpose of paying alimony or child support, the National Insurance Institute is entitled to transfer or garnish your old-age pension).

A self-employed insured and an insured who is neither a salaried employee nor self-employed, who are required to make insurance contributions to the National Insurance Institute, will not receive an old-age pension or will receive a reduced old-age pension (according to the amount of the debt and the amount of time which the payment is in arrears) until the debt is settled with the collection department.

You are obligated to notify that National Insurance Institute of any change that might affect the payment of your old-age pension (such as a change of address, change in family status, change in your income or in your spouse’s income). This notification must be provided in writing within 30 days of the change.

If an increment to the pension was paid illegally, the National Insurance Institute is entitled to deduct it from the pension that it pays you.